RESERVE BANK OF INDIA vs SAHARA INDIA FINANCIAL CORP.LTD.

The Supreme Court held that the principles of natural justice require that a party must be given an opportunity to present its case before any adverse action is taken against it, as per the procedural fairness doctrine. The Court found that the Reserve Bank of India must provide Respondent No.1 a hearing regarding the show cause notice issued on 09.05.2008 and the subsequent order dated 04.06.2008. The interim order of the High Court was upheld, allowing Respondent No.1 to present its case before the Reserve Bank of India on 12.06.2008.